Intercontinental Exchange, through its U.S.-based credit default swap (CDS) clearing house ICE Clear Credit, has been granted Recognised Clearing House status from the Monetary Authority of Singapore with effect from December 7, 2018.
ICE Clear Credit is the first global CDS clearinghouse to be recognised in Singapore. The firm now has the authority to on-board clearing members from Singapore for clearing of CDS contracts.
Stan Ivanov, President of ICE Clear Credit, commented:
“I would like to thank the Monetary Authority of Singapore for this recognition. ICE Clear Credit is now the first global clearinghouse for credit default swaps in Singapore meaning that it can now have clearing members from Singapore and further serve our customers in the region. Singapore is the hub for our Asian business and this recognition will help us to expand our offering to customers across Asia and Australia.”
The leading operator of global exchanges and clearing houses and provider of data and listings services launched ICE Clear Credit and ICE Clear Europe CDS in 2009. Both subsidiaries offer clearing for more than 500 single name and 160 index CDS instruments based on corporate and sovereign debt, and have reduced counterparty risk exposure by clearing approximately $110 trillion in gross notional amount, with open interest of approximately $1.6 trillion.
Recognized as a third-country CCP under the European Market Infrastructure Regulations by the European Securities and Markets Authority for products regulated by the Commodity Futures Trading Commission, ICE Clear Credit has 30 participants including big industry names such as Bank of America, Barclays, BNP Paribas, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Merrill Lynch, Nomura, Morgan Stanley, Societe Generale, UBS, and Wells Fargo.
ICE Clear Credit offers portfolio margining relief with respect to clearing member house/proprietary transactions. Pursuant to CFTC and SEC Orders, ICE Clear Credit provides similar relief for broker dealer/FCMs that maintain clearing accounts for customer-related transactions.